Green Day Hardware Company's payroll for November 2014 is summarized below. At this point in the year,

Question:

Green Day Hardware Company's payroll for November 2014 is summarized below.
Amount Subject to Payroll Taxes Unemployment Tax Payroll Wages Due Federal State S120,000 S40,000 S40,000 Factory 32,000

At this point in the year, some employees have already received wages in excess of those to which payroll taxes apply. Assume that the state unemployment tax is 2.5%. The FICA rate is 7.65% on an employee's wages to $110,100 and 1.45% in excess of $110,100. Of the $188,000 wages subject to FICA tax, $20,000 of the sales wages is in excess of $110,100. Federal unemployment tax rate is 0.8% after credits. Income tax withheld amounts to $16,000 for factory, $7,000 for sales, and $6,000 for administrative
Prepare the journal entries to record the factory, sales, and administrative payrolls including the employer's payroll taxes.

Fantastic news! We've located the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

Intermediate Accounting

ISBN: 978-1118147290

15th edition

Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield

Question Posted: